Multiple Choice
An example of a procyclical fiscal policy is:
A) an income tax.
B) unemployment compensation.
C) a balanced budget policy.
D) welfare payments.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q8: What is the crowding out effect? Using
Q9: The government's running of a deficit or
Q10: According to the Ricardian equivalence theorem, people
Q11: Most of the government budget is mandatory
Q12: During an economic expansion, automatic stabilizers:<br>A)reduce both
Q14: If an economy is above potential output
Q15: If private investment is relatively sensitive to
Q16: Why did proponents of sound finance oppose
Q17: Fiscal policy would be more effective if:<br>A)potential
Q18: When the economy is experiencing inflation, an